Judge Holwell on SAC Insider Trading Charges

11/21/2012 5:02PM

Judge Richard Holwell, who presided over the Raj Rajaratnam trial, gives us his take on federal prosecutors claims that they've uncovered the most lucrative insider-trading scheme ever that implicated hedge-fund giant Steven A. Cohen.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... the the the it's alleged cases of insider trading the US is the same and tonight we're quite lucky with ... special guest is to help the cut it foresees judge which is how he presided over the Ross walked around them to a sound which makes him immunity qualified to compete on costs by another inside if anything ... thank you alleged insider trades in which the search for bankers to see what I was a was I was trapped on this so I'm ... you know all this leave the inflation is still coming out of place on the information that ... YouTube app which is will begin a new study has which is what we've all read ... about this case involves Assisi capital one of the critical points up on which this ... case rests ... in even the simplest sense to me and that we should be looking for ... well leave the interesting issue is whether or not the government to pass the ... information will get the information necessary to make a direct ... attack ... on the chairman of the firm ... Stephen Collins ... I that's going to depend in part on whether or not they can churn Mr. Martelle month ... and when ATMs Martelle match any useful to say ... interesting tactic the government has taken they haven't brought indictment against Greece more time I that's something that comes from Ninja grand jury ... instead of perceived by a criminal complaint ... that slows the process down ultimately they'll have to go to the grand jury ... this will give them some room to perhaps negotiate ... fill out their case ... for negotiate weakness Mark Thomas lawyers see whether or not there's any possibility of a deal in a new experience when my one prosecutors up on slowing down the case using the criminal complaint drumming going straight for the incitement is not a sign of a strong case that were a week it's like you know actually can be a sign of either up ... or slowing down and when you don't have all your ducks in a row ... and and you still are conducting the investigation fleshing out and and and expands when you take to the grand jury and bring back the indictment ... on the other hand you can use it as a tactic to attempt to solve we're not socially pressure ... a defendant to do well ... to cooperate with the government in pursuing of the target system did you think you will so getting sick and some of the time Incorporated is that usually nominate a key aspect in the face of ... it is of course you have to keep in mind that to ... historically insider trading cases and an established on the basis of circumstantial evidence ... alone frequently ... we look at trading records and telephone log records ... and stock movements said that historically was the way one didn't before the advent of ... the taping ... hmm wiretapping of telephones ... that game has changed course to ... win is that Mr. Rajaratnam's ... the case ... although there's no evidence at ... an as yet that ... it's a tactic to debuts against ACC ... now not in the SNC cases clearly unassisted Becker an easy with a big fish ... aam and and he's a bit it's his phone with whipped off the map and the dollar amounts being specified in in this case are the moments this this is ... this is not emo a few thousand bucks this is millions and millions of dollars I'm I mean it's it's just ... absolutely enormous easy is to walk ... past the frosting is not whether prosecutors the re ... focus on on on this front well it was certainly had that makes it a delectable target for a prosecutor ... who knew of it as Mr. burqa right is going aggressively Action Wall Street their crime ... but the fact it is this a Siemens to calm ... it makes it doubly ... attractive ... if they can come up with is ... going to drop storm watchers hedge funds in the country is um because that's the sends a message that us astray ... absolutely and that's what the government has consistently been doing in the past three years ... and this ... really brings up an option ... it's one thing for the government to have ... brought down and some seventy five cases when year ... would dealing largely with in the Galleon related to a conspiracy now if ... it if you're fortunate second two entirely different organization ... he he you then have to start asking yourself though ... whether it be it in the Galleon case was just a one off when interiors are real fundamental problem in how the market is operating in how the market structure ... as the government is going to continue to press on those issues ... in order to get business people on the street to conform their behavior ... a much needed twenty years ago I went to Iconix and getting the hang of it what is the head that are ... at it and I love I like the nicest of the sister's Progressive reflective of you back to come